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What is bank IFSC code?

The Indian Financial System Code (IFSC) is an alphanumeric code that uniquely identifies a Bank-Branch participating in the two main Electronic Funds Settlement Systems i.e. RTGS and NEFT systems. IFSC is used by the NEFT & RTGS systems to route the messages to the destination banks / branches. Bank-wise list of IFSCs is available with all the bank-branches participating in interbank Electronic Funds Transfer. IFSC Code consists of 11 Characters: (example: ABCD0123456)

What is NEFT transfer?

National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme. NEFT can also be used to transfer funds from or to NRE and NRO accounts in the country. This is subject to the adherence of the provisions of the Foreign Exchange Management Act, 2000 (FEMA) and Wire Transfer Guidelines. However, NEFT cannot use to send remittances to abroad.

What is RTGS transfer?

The term RTGS stands for Real Time Gross Settlement, which can be defined as the continuous (real-time) settlement of funds transfers individually on an order by order basis (without netting). "Real Time" means the processing of instructions at the time they are received rather than at some later time; "Gross Settlement" means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis). Considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable. The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is Rs. 2 lakh. There is no upper ceiling for RTGS transactions.

What is Bank MICR Code?

Magnetic Ink Character Recognition Code (MICR Code) is a character-recognition technology used mainly by the banks to easy the processing and clearance of cheque. MICR characters are printed on a document in the MICR fonts. The ink used in the printing is a magnetic ink or toner. A special machine is used to read these characters, however, MICR code is also human readable. MICR code is used for cheque clearing process to identify the branch and bank.